Coinbase Holding Above Lows

Shares in Coinbase are continuing to hold above the yearly lows, despite a dismal set of Q2 earnings from the company last week. The crypto broker posted EPS of -$4.98, down sharply on the -$2.47 the market was looking for. Additionally, revenues were seen heavily lower at $808 million, versus $873 million forecast.

It’s been a very tricky time for Coinbase this year. The company has suffered from the rally in USD and the subsequent impact on US stocks, tech stocks in particular, along with massive outflows from retail crypto traders amidst the crash in crypto prices. While Coinbase shares appear to have bottomed out for now, with price holding along the 49.52 since early May.

In terms of figures, Coinbase noted 50% less user volume compared with the same quarter a year earlier. Interestingly, Coinbase noted that as a means of survival the firm had been offering customers more diverse products and non-traditional investing products such as staking. This is where user earn crypto-interest by loaning out there crypto for proof-of-transaction work on the network. However, looking ahead, unless crypto markets start to see a rebound, the near-term future looks murky for Coinbase.

Technical Views

Coinbase

Coinbase shares remain at the bottom of the recent declines. While price has rallied off the lows and is testing above the bear channel, shares are still capped by the 110.37 resistance level. While this area holds, a break of 49.52 cannot be ruled out. To the topside, 154.35 is the next resistance to note.